TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Government monitoring SOEs’ swelling debts

News Desk (The Jakarta Post)
Jakarta
Fri, December 7, 2018

Share This Article

Change Size

Government monitoring SOEs’ swelling debts Finance Minister Sri Mulyani Indrawati (JP/Anton Hermansyah)

F

inance Minister Sri Mulyani Indrawati said on Thursday that the Finance Ministry and State-Owned Enterprises Ministry are monitoring the debt of state-owned enterprises (SOEs), which was recorded at Rp 5.57 quadrillion (US$369.04 billion) in the third quarter of 2018.

“About the SOEs’ debt, the state-owned enterprises minister and I are continuously monitoring it because they are the agents of development,” said Sri Mulyani in Nusa Dua, Bali, as quoted by kompas.com, adding that it was important because the SOEs also received funds from the government in the form of capital injections from the state budget.

“We need to keep the SOEs’ debt ratio [sound]. I believe the State-Owned Enterprises Ministry should always monitor the performance of the SOEs,” said Sri Mulyani.

Previously, apart from revealing the debt, the ministry’s restructuring and development undersecretary, Aloysius K Ro, also revealed several other points -- Rp 7.71 quadrillion in combined assets, Rp 2.41 quadrillion in combined equity and Rp 79 trillion in combined profits.

He said state-owned lenders have combined debt of Rp 3.31 quadrillion or 74 percent of the total SOE debts, while the remaining figure was the debt of non-lending institutions.

Aloysius said the figure was not a cause for concern as long as the SOEs were still capable of repaying their debts. “The debt equity ratio to capital is relatively secure. Therefore, we do not need to worry.”

He explained that the ability of any company to repay debt was also reflected in the company's earnings before interest, tax, depreciation and amortization, and not their annual profit. (bbn)

 

{

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.